- 1
- Any dispute arising between the Parties relating to the interpretation or application of this Agreement and its Annex, the Parties shall in the first place endeavour to settle their dispute by consultations and negotiation.
- 2
- If the Parties fail to reach a settlement through consultations, the dispute may, at the request of either Party, be submitted to arbitration in accordance with the procedures set forth below.
- 3
- Arbitration shall be by a Tribunal of three arbitrators, one to be named by each Party and the third to be agreed upon by the two arbitrators so chosen, provided that the third such arbitrator shall not be a national of either Party. Each Party shall designate an arbitrator within a period of sixty (60) days from the date of receipt by either Party from the other Party of a diplomatic note requesting arbitration of the dispute, and the third arbitrator shall be agreed upon within a further period of sixty (60) days. If either of the Parties fails to designate its own arbitrator within the period of sixty (60) days or if the third arbitrator is not agreed on within the period indicated, the President of the Council of the International Civil Aviation Organization may be requested by either Party to appoint an arbitrator or arbitrators. If the President is a national of one of the Parties, the most senior Vice President who is not disqualified on that ground shall make the appointment.
- 4
- At the direction of the tribunal or at the request of either of the Parties, a conference to determine the precise issues to be arbitrated and the specific procedures to be followed shall be held no later than fifteen (15) days after the tribunal is fully constituted.
- 5
- Except as otherwise agreed by the Parties or prescribed by the tribunal, each Party shall submit a memorandum within forty-five (45) days of the date the tribunal is fully constituted. Replies shall be due sixty (60) days later. The tribunal shall hold a hearing at the request of either Party or at its discretion within fifteen (15) days after replies are due.
- 6
- The tribunal shall attempt to render a written decision within thirty (30) days after completion of the hearing or, if no hearing is held, after the date both replies are submitted. The decision of the majority of the tribunal shall prevail.
- 7
- The Parties may submit requests for clarification of the decision within fifteen (15) days after the decision is rendered and any clarification given shall be issued within fifteen (15) days of such request.
- 8
- The decision of the tribunal shall be binding on the Parties.
- 9
- The expenses of the tribunal shall be shared equally between the Parties.
- 10
- If and so long as either Party fails to comply with any decision given under paragraph 2 of this Article, the other Party may limit, withhold or revoke any rights or privileges which it has granted by virtue of this Agreement to the Party in default or to the Designated Airline or Airlines in default.
